Interest rates remain at 0.5%

Private landlords and other mortgage holders have learned that interest rates will remain at 0.5 per cent this month.

Earlier today, the Bank of England's monetary policy committee (MPC) opted to keep the base rate at this level - the same decision was made in March.

It was the first time since September 2008 that the MPC has chosen to keep the rate at the same level as the previous month.

Many industry commentators, including those from the Royal Institution of Chartered Surveyors and the chief economists at Lloyds TSB and Global Insight, had predicted correctly that the rate would stay at 0.5 per cent.

Various experts believe that the interest rate will stay the same for the remainder of 2009.

The MPC also announced today that the group voted to continue with the programme of asset purchases totalling £75 billion, which is financed by the issuance of central bank reserves.

According to the statement, the initiative has made £26 billion since the MPC's last meeting and the target will be reached in the next two months.